On January 16 2025, Startup India, a transformative initiative of Government of India (GoI) that started in 2016, has successfully completed 9 years. The initiative aimed to foster innovation and boost the growth of startups across the country. GoI has designated January 16 as National Startup Day to celebrate the nation’s stride in promoting a robust and inclusive entrepreneurial ecosystem.
- With over 1.59 lakh startups (from 500 in 2016) recognised by DPIIT (as of January 15, 2025,), India has firmly positioned itself as the world’s 3rd largest startup ecosystem.
- Startup India initiative is being implemented by Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry (MoC&I).
Key Accomplishments of Startup India:
i.Indian cities like: Bengaluru (Karnataka), Hyderabad (Telangana), Mumbai (Maharashtra), and Delhi-National Capital Region (NCR) emerged as major hubs for startups in India, while smaller cities have increasingly contributed to India’s entrepreneurial momentum.
ii.As of October 31, 2024, a total of 73,151 recognized startups include minimum one women director, demonstrating the increase of women entrepreneurs in India.
iv.Over 16.6 lakh direct jobs have reportedly been created by DPIIT recognized startups across various sectors, from 2016 to October 31, 2024.
- The Information Technology (IT) Services industry with 2.04 lakh jobs, has topped among the industries which created maximum number of jobs in startups, followed by Healthcare & Lifesciences (1.47 lakh jobs), and Professional & Commercial Services (with around 94,000 jobs).
Flagships Schemes Implemented under Startup India:
i.Startup India Seed Fund Scheme (SISFS): It was launched for a period of 4 years starting from 2021-22 with budget outlay of Rs 945 crore.
- The main objective of the scheme is to support startups in areas like: proof of concept, prototype development, product trials, among others.
ii.Credit Guarantee Scheme for Startups (CGSS): The scheme provides credit guarantees for loans provided to DPIIT-recognised startups by scheduled commercial banks, Non-Banking Finance Companies (NBFCs), and Venture Debt Funds under Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs).
- It is being implemented by the National Credit Guarantee Trustee Company Limited (NCGTC).
- As of October 31, 2024, Rs 555.24 crore in loans were guaranteed to 235 startups, including Rs 24.60 crore to 18 women-led startups under this scheme.
iii.Fund of Funds for Startups (FFS) Scheme: It was launched in June 2016 with budget outlay of Rs 10,000 crore. The scheme aims to improve access to domestic capital for Indian startups and promote the entrepreneurial ecosystem.
- The scheme is being managed by Small Industries Development Bank of India (SIDBI), does not invest directly in startups but provides funding to SEBI-registered AIFs which further invest in startups through equity and equity-linked instruments.
- By 2024, Rs 11,148 crore was committed, attracting investments of Rs 21,221.36 crore in 1,165 startups.
About BHASKAR initiative:
In September 2024, DPIIT launched the Bharat Startup Knowledge Access Registry (BHASKAR) platform, a cutting-edge initiative which is a part of the Startup India initiative. The initiative aimed to streamline and centralize interactions within India’s entrepreneurial ecosystem.
- It also aims to foster innovation, collaboration and growth by connecting startups, investors, mentors, service providers, and government bodies.
About Startup Mahakumbh:
i.The Startup Mahakumbh which is considered one of the largest get-together of startups, unicorns, investors, and various other ecosystem stakeholders under one roof.
- The 1st edition of Startup Mahakumbh was held in 2024, which hosted over 1,300 exhibitors, showcased across 10 thematic pavilions.
- It was jointly organised by Associated Chambers of Commerce and Industry of India (ASSOCHAM), National Association of Software and Service Companies (NASSCOM), Bootstrap Incubation & Advisory Foundation; The IndUS Entrepreneurs (TiE) and Indian Venture and Alternate Capital Association (IVCA).
ii.The 2nd edition is scheduled to be held from April 03 to April 05, 2025 at Bharat Mandapam in New Delhi (Delhi) under the theme “Startup India @ 2047- Unfolding the Bharat Story”.
Startup Funding in India Increased to USD 115 billion from USD 8 billion: DPIIT
In January 2025, DPIIT released figures of startup performance in India as a curtain raiser to commemorate National Startup Day on January 16. As per the DPIIT data, startup funding in India has increased significantly from just USD 8 billion (in 2016) to USD 115 billion (in 2024).
- It also revealed that the number of states and Union Territories (UTs) with dedicated startup policies has increased from 4 (in 2016) to 31 (in 2024).
Key Findings about Startups in India:
i.The data showed that number of unicorns in India increased from just 8 (in 2016) to 118 (in 2024).
Note: Unicorns are startups valued at least a billion dollars but not yet listed on a public exchange.
Union Minister Piyush Goyal Launched PRABHAAV Factbook, Bharat Startup Challenge on 9th Foundation Day of Startup India
On January 16 2025, Union Minister Piyush Goyal, MoC&I launched two key initiatives including the PRABHAAV Factbook (Powering a Resilient and Agile Bharat for the Advancement of Visionary Startups) and Bharat Startup Challenge at the celebration of 9 years of Startup India in New Delhi, Delhi.
About Newly Launched Initiatives:
i.PRABHAAV Factbook will act as the ultimate guide to India’s growing startup ecosystem and its growth story from 2016-2024. It will also capture the achievements of every region.
ii.Bharat Startup Challenge will unleash 75 challenges across different sectors like: Renewable Energy (RE), Agritech, Healthcare, Blockchain, Social Commerce, among others.
- The challenge will witness 20 industry leaders and innovators invite thinkers to address the challenges in above mentioned sectors.
Other Key Points:
i.He informed that India has seen 76 Initial Public Offerings (IPOs) for the Calendar Year (CY) 2024. Also, startups in India till date have received a total funding of Rs 13 trillion from GoI.
CM of Maharashtra Signed MoU with SIDBI to Establish 100 Crore Fund
In January 2025, Devendra Fadnavis, Chief Minister (CM) of Maharashtra signed a Memorandum of Understanding (MoU) with SIDBI to establish a Rs 100 crore fund aimed at strengthening startups and small businesses in the state.
- CM Devendra Fadnavis made the announcement about MoU during the National Startup Day programme organised by the Maharashtra State Innovation Society under the Department of Skill, Employment, Entrepreneurship and Innovation held in Mumbai, Maharashtra.
- He informed that now, Rs 30 crore fund will be available at every divisional centre (previously funds were managed at Mumbai).
Startup Policy Forum Launched ‘Startup Baithak’ and ‘Startup Baatcheet’ to Celebrate National Startup Day 2025
Startup Policy Forum (SPF), with the support of DPIIT and Startup India, launched two flagship initiatives namely, ‘Startup Baithak’ and ‘Startup Baatcheet’ to celebrate National Startup Day 2025.
- The event was held from January 15 to January 16, 2025 at iconic Group-20 (G20) Summit room in Bharat Mandapam, New Delhi (Delhi).
- During the event, key policy issues were discussed including data privacy, reverse flipping, Artificial Intelligence (AI) governance, capital market, and fintech regulations.
Key Points:
i.The Startup Baithak has featured 12 exclusive, close-door roundtables held for over two days. It saw the participation from startups such as: Swiggy, Zerodha, Razorpay, BharatPe, Physics Wallah, among others.
ii.On the sidelines of Bhaitak, SPF also organised Startup Baatcheet, an informal networking event held on January 15, 2025.
- The event brought together founders, investors, startup ecosystem enablers, policymakers, and lawmakers to capture the startup outlook for 2025.
About Startup:
Income Tax Exemption for 3 years: Startups incorporated on or after 1st April 2016 can apply for income tax exemption. The recognized startups that are granted an Inter-Ministerial Board Certificate are exempted from income- tax for a period of 3 consecutive years out of 10 years since incorporation.
Faster Exit for Startups: The Government has notified Startups as ‘fast track firms’ enabling them to wind up operations within 90 days vis-a-vis 180 days for other companies.
About Ministry of Commerce and Industry (MoCI):
Union Minister- Piyush Goyal (Constituency- Mumbai North, Maharashtra)
Minister of State (MoS)- Jitin Prasada (Constituency- Pilibhit, Uttar Pradesh, UP)
